Africa’s richest man, Aliko Dangote, and fellow billionaire David Rubenstein have entered the Kenyan tourism industry by acquiring Pollman’s Tours and Safaris.
Business Insider Africa reports that in February, Alterra Capital, a private equity firm supported by American billionaire David Rubenstein and Aliko Dangote, invested in ARP Africa Travel Group, the parent company of Pollman’s Tours and Safaris.
In a strategic move to tap into Kenya’s thriving tourism sector, the firm recently acquired Pollman’s Tours and Safaris, the country’s oldest tour company.
“About the proposed transaction, post-merger, the market share of the merged entity will not change as the target and the acquirer are not in similar business and therefore the structure and concentration of the markets for tour operators in Kenya will not be affected,” the regulator said in a statement.
According to the Competition Authority of Kenya (CAK), the composition and concentration of Kenya’s decentralised tour operator industry, home to more than 300 companies, including Bonfire Adventures and Bountiful Safaris, will not alter.
In addition, the regulator concluded that the acquisition does not threaten jobs or the competitiveness of small businesses, two major public interest issues under Kenyan merger rules.
According to a report by Kenyan Wall Street, the parties confirmed that the transaction would not result in job losses.
Aliko Dangote has extensive experience operating in international markets.
In a continued push for regional integration, Aliko Dangote recently expanded his agro-industrial conglomerate into Ghana by launching a large-scale sugar refinery in Kwame-Danso, Bono East Region.
Funded by Dangote Sugar Refinery Plc, the initiative is a bold move to penetrate Ghana’s $162 million annual sugar import market while supporting the government’s “One District, One Factory” industrialisation strategy.
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The cutting-edge facility will be capable of processing 12,000 tons of sugarcane daily and will be supported by a 25,000-hectare irrigated plantation.
The facility will create high-value byproducts, including molasses and ethanol, in addition to refined sugar, opening up potential in the agro-processing and biofuel industries.
Since launching his oil refinery, Nigerian businessman Aliko Dangote has expanded petroleum exports to Saudi Arabia, North America, and, most recently, Turkey.
Dangote Cement alone operates in 10 African countries, including Cameroon, Ethiopia, Ghana, Senegal, Sierra Leone, and South Africa.
Frequently Asked Questions (FAQ) & Answers
1. Why did Dangote and Rubenstein invest in Pollman’s Tours and Safaris?
Dangote and Rubenstein’s investment aligns with their strategy to expand into Africa’s tourism sector, recognising Kenya’s travel market as a lucrative industry with long-term growth potential.
2. How does Pollman’s acquisition impact the Kenyan tourism industry?
The acquisition will bring financial stability and strategic leadership to Pollman’s Tours, potentially enhancing Kenya’s tourism sector while maintaining market competition and employment levels, as confirmed by the Competition Authority of Kenya (CAK).
3. What is Alterra Capital’s role in this investment?
Alterra Capital, a private equity firm backed by David Rubenstein and Aliko Dangote, facilitated the acquisition through its investment in ARP Africa Travel Group, the parent company of Pollman’s Tours and Safaris.
4. Will the acquisition affect jobs in Kenya’s tour operator sector?
No, the parties involved have assured that there will be no job losses, and the deal will not negatively impact small tour operators in Kenya.
5. Has Dangote expanded his business outside of Nigeria before?
Dangote has a vast international presence, including Dangote Cement operations in 10 African countries, petroleum exports to Saudi Arabia, North America, and Turkey, and a massive sugar refinery project in Ghana.
6. How will Dangote’s tourism investment compare to his other industries?
While Dangote is best known for his industries, such as cement, oil, and agriculture, his entry into tourism signals his diversification into Africa’s growing travel economy.
